Kansai Nerolac Q4 Review - Short-Term Pain: Dolat Capital
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Dolat Capital Report
Kansai Nerolac Paints Ltd.'s revenue grew 35.1% YoY to Rs 15.9 billion in Q4 FY21, was ahead of our estimate.
Double digit growth across segments coupled with price hikes helped the surge in revenue.
The decorative business witnessed double digit volume growth during Q4.
However, the company was not able to increase market share compared to other big players.
Gross margin contracted by 440 basis points due to steep raw material inflation and not enough price pass on during the quarter.
The company is expected to implement further price hikes to mitigate cost inflation.
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